“The Mission of the IMF and Ukraine reached an agreement to allocate the next part of the loan under the program for $ 15.5 billion. One of the issues was the source of funds to increase military expenses. About it reports Bloomberg. The IMF staff approved a new tranche of about $ 500 million after the inspection was completed during the visit to Kiev this week. Now the agreement”, – WRITE ON: ua.news
The Mission of the IMF and Ukraine reached an agreement to allocate the next part of the loan under the program for $ 15.5 billion. One of the issues was the source of funds to increase military expenses.
About it reports Bloomberg.
The IMF staff approved a new tranche of about $ 500 million after the inspection was completed during the visit to Kiev this week. The agreement should now be approved by the IMF Board, which is often simply formality.
The IMF negotiations with Ukrainian officials on the subsequent tranche of financing serious differences were not found, but creditors have expressed concern for the Kiev plan to increase the military budget by about UAH 400 billion ($ 9.6 billion) this year. Increasing will lead to a shortage above 10% of GDP, reported sources familiar with discussions.
The IMF has recognized the urgency of increasing military expenditures, as attempts to reach a ceasefire agreement have come to a dead end, but officials want Ukraine to determine the path of their financing, said one of the sources. One of the sources could become internal borrowing, said another interlocutor
We will remind, Ukraine has already received about $ 10.1 billion from $ 15.5 billion, provided by the Extended Financing Program (EFF) from the International Monetary Fund.
The Fitch Ratings International Agency is waiting for a slowdown in Ukraine’s economy in 2025 as a war. Price rise will exceed 10%.
